Google, Microsoft and Amazon report gains in cloud-computing businesses while Meta spending draws concern
Unusual simultaneous reports of financial results by several of the US’s largest tech companies gave positive indications for the stock market despite widespread fears of an AI bubble on Wednesday.
Four of the so-called Magnificent Seven tech stocks, the most valuable publicly traded companies in the world, reported their quarterly financial results on Wednesday. The cluster is not typical, as these disclosures do not often occur on the same day, and provides a snapshot of how the tech industry is faring as it rides the AI boom. Amazon, Alphabet and Microsoft all revealed double-digit gains in their cloud computing units, which have seen supercharged growth thanks to increasing adoption of AI. Meta, not in the business of cloud computing, failed to meet Wall Street expectations.
Wall Street investors are closely watching the results as these tech companies lead the way on enormous spending on AI infrastructure such as datacenters. The four companies have together planned to spend $650bn in 2026 on AI infrastructure. Investors and economists anticipate that poor results could throw the market into turmoil, and will be scrutinizing capital expenditure projections. The combined Mag-7 stocks make up over 30% of the S&P 500’s market capitalization.
